MSc Finance & Banking

Banking profitability in United Arab Emirates from 2008 to 2012 Post Graduate Student Name: Musab Ahmad Alatiyat BUiD MSc Finance & Banking Financial...
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Banking profitability in United Arab Emirates from 2008 to 2012 Post Graduate Student Name: Musab Ahmad Alatiyat BUiD

MSc Finance & Banking Financial Statement Analysis and Security Valuation FN503 Student ID : 2013109084 Email : [email protected], [email protected] Mobile 00971503315404 November 25th,2013

BUiD-F&B- 2013109084

Electronic copy available at: http://ssrn.com/abstract=2386013

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Abstract

This research investigates Banks’ profitability in the United Arab Emirates from 2008 to 2012 using Bankscope Data Base, Financial Statement, and quantitative methodology techniques. This study focusse on 4 banks, 2 Islamic banks (Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank - Public Joint Stock Co.), and 2 conventional banks (Union National Bank, Mashreqbank PSC). Each one sae assets fo about 20 billion USD in 2012. The Literature review summarized important related studies in tnoosfsid durations. They studied 27 criteria effecte on profitability in GCC, Asia, Tunis, and Greek. This research study on the Amount of Assets Change, Equity Change, Return on assets Average (ROAA) & Return on equity (ROEA), Profit before Tax, Operational profit, operational profit/average Equity, Interest income. This study found different results from other studies such as inflation and GDP do not have an effect on change of assets, ROAA, and ROEA. Islamic banks faced many problems in 2009, and 2010, but they had a good correcting after one year, and their ratio’s different from others, they have less ROA, ROE, but their interest, after 2010 become the highest.

Keywords: Banks’ profitability, ROA, ROE, Total Assets, Total Equity, Interest, income, population, Inflation, real GDP, Statement Analysis Techniques, United Arab Emirates.

BUiD-F&B- 2013109084

Electronic copy available at: http://ssrn.com/abstract=2386013

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Table of content 1

Abstract ........................................................................................................................................... 2

2

Introduction .................................................................................................................................... 6

3

4

5

2.1

Rationale of Assignment .......................................................................................................... 6

2.2

Null Hypothesis ........................................................................................................................ 6

2.3

Challenges ............................................................................................................................... 6

Literature review ............................................................................................................................. 7 3.1

Terminology............................................................................................................................. 7

3.2

Research Articles...................................................................................................................... 7

3.3

Summary, Comments, and Criticisms ........................................................................................ 9

Methodology ................................................................................................................................. 10 4.1

Sample Data and Period ......................................................................................................... 10

4.2

Analytical Approach ............................................................................................................... 10

Analysis ......................................................................................................................................... 11 5.1

Amount of Assets Change, Equity Change ............................................................................... 11

5.2

Return on assets Average (ROAA) & Return on equity ............................................................. 11

5.3

Profit Before Tax .................................................................................................................... 11

5.4

Operational profit .................................................................................................................. 11

5.5 Interest income ...................................................................................................................... 12 5.5.1 Interest Income & Interest Expense ................................................................................... 12 5.5.2 Interest income on loans/Average Gross Loans .................................................................. 12 5.5.3 Interest Income/Average Earning Assets ............................................................................ 12 5.5.4 Net Interest Income/Average Earning Assets ...................................................................... 12 5.6 Interest Expense..................................................................................................................... 12 5.6.1 Interest Expense on Customer Deposits/Average Customer Deposit................................... 12 5.6.2 Interest Expense/Average Interest – Bearing Liabilities Ratio.............................................. 13 5.6.3 Net Int. Less Loan Impairment charges/ Average Earning Assets. ........................................ 13 6

Summary of Findings, and Suggestions, and Recommendations .................................................... 13

BUiD-F&B- 2013109084

Electronic copy available at: http://ssrn.com/abstract=2386013

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7

Conclusion ..................................................................................................................................... 13

8

Bibliography .................................................................................................................................. 14

9

Appendices .................................................................................................................................... 15 9.1 Tables .................................................................................................................................... 15 9.1.1 Table 1 Governments shareholders table ......................................................................... 15 9.1.2 Table 2 Equity/Total Assests ........................................................................................... 16 9.1.3 Table 3 Amount Of Change Rate for Total assets in bill USD ............................................. 17 9.1.4 Table 4 Amount Of Change Rate for Equity in bill USD ..................................................... 17 9.1.5 Table 5 United Arab Emirates - inflation .......................................................................... 17 9.1.6 Table 6 – Regression Change on Assets with Inflation ...................................................... 18 9.1.7 Table 7 Return on Average Assets (ROAA) ................................................................. 19 9.1.8 Table 8 Return on Average Assets (ROAE) ................................................................... 19 9.1.9 Table 9 Profit before Tax .................................................................................................... 20 9.1.10 Table 10 UAE Independent indicators: GDP – Inflation - population................................ 20 9.1.11 Interest Income on Loans/ Average Gross Loans ............................................................ 20 9.1.12 Interest Expense on Customer Deposits/ Average Customer Deposits ............................ 21 9.1.13 Interest Income/ Average Earning Assets ....................................................................... 21 9.1.14 Interest Expense/ Average Interest-bearing Liabilities .................................................... 22 9.1.15 Net Interest Income/ Average Earning Assets................................................................. 22 9.1.16 Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets ...................................... 23 9.1.17 Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets ......................... 23 9.1.18 ROAA relation with inflation and GDP rate ..................................................................... 24 9.1.19 SPSS .............................................................................................................................. 24 9.1.20 Bankscope Definitions ................................................................................................... 28 9.1.21 Assets Rank for United Arab Emirates banks .................................................................. 29 9.2 Graphs ................................................................................................................................... 31 9.2.1 Chart 1 Change on assetss................................................................................................. 31 9.2.2 Chart 2 Change on Equity ................................................................................................. 31 9.2.3 Chart 3 Total Assetss in USD bill ....................................................................................... 32 9.2.4 Chart 4 Equity in USD bill ................................................................................................. 32 9.2.5 Chart 5 Return on assets Average (ROAA) from 2008 to 2012 ............................................ 33 9.2.6 Chart 6 Return on Equity Average (ROEA) from 2008 to 2012 ........................................... 33 9.2.7 Chart 7 profit before Tax ............................................................................... 34 9.2.8 Chart 8 GDP - Inflation ..................................................................................................... 34 Chart 9 Profit before Tax mil USD ................................................................................................... 35 Chart 10: Operating profit/ average Assets & Operating profit/ average Equity .............................. 36 9.2.9 Chart 11- Interest Income on Loans/ Average Gross Loans ................................................. 37 9.2.10 chart12 - Interest Income/ Average Earning Assets ........................................................ 37 9.2.11 Chart 13- Net Interest Income/ Average Earning Assets ................................................. 38 9.2.12 Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits .............. 38 9.2.13 Chart15- Interest Expense/ Average Interest-bearing Liabilities ...................................... 39 9.2.14 Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets ........................ 39 9.2.15 Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets ........... 40 9.2.16 Cart 18 Population-mil ........................................................................................ 40

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2

Introduction

In the UAE there are 37 banks (Bankscope Data Base), some of them are Islamic banks and others are conventional. Many of them have strong relations with the government. 6 banks in UAE data are n.a in bankscope, the other 31 banks total assets are about 512 billion USD. There are many ranks, this study uses bank assets size rank, and group banks into 4 categories; 1st category Emirates NBD PJSC, and National Bank of Abu Dhabi, their assets about 80 billion USD each, 2nd category Abu Dhabi Commercial Bank, and First Gulf Bank, their assets about 40 billion USD each, 3rd category Dubai Islamic Bank PJSC, Union National Bank, Abu Dhabi Islamic Bank - Public Joint Stock Co., and Mashreq bank PSC, their assets about 20 billion USD each, 4th category all retail small bank which their assets less than 20 billion. This study focuses on the 3rd category, analyzing their profitability from 2008 to 2012.

2.1 Rationale of Assignment The lecturer review summarized that the Inflation effect on banks profitability (positive/negative relation) in some countries and others not, demotic growth rate (GDP ) adjust the inflation, population, and prices, and its correlated with any business profitability as capitals investment (Lui, J & Ohlson J & Zahang W, 2013) so it’s necessary to test its relation with profitability. Population should effect on profitability because 85% UAE people are Expats, most of them skill workers, so any change in population should be related to number of job, also loans and deposits, so it effect on profitability. The most important question about profitability is ROA,ROE, how much their return, so this study focus try to test return on assets, return on equity, Interest, and income ratios.

2.2 Null Hypothesis There isn’t a significant relation between (ROA, ROE), and (GDP, Inflation, population) for all of these category banks.

2.3 Challenges Many researchers studied banks profitability round the world, and fewer in UAE, and GCC. The only way to study this zone is applying other areas studies on this area using real data. Bankscope, it is the most important database for banks, but some information fields are null for this region, even if they are available in other regions. The challenge is BUiD-F&B- 2013109084

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how to use the available data to get the right results. Also many factors affect profitability and some of those factors correlated to others and related to profitability also. This Study attempts to pull out the profitability ratios for the 3rd banks category in UAE from 2008 - 2012 ,and highlighting the differentiation between ratios, to open a window for researchers to study deeply profitability factors ,and increase it profitability for banks sector in UAE.

3 Literature review 3.1 Terminology Many researchers studied Banks’ profitability using dependent and independent factors. They used financial ratios, operational ratios, and liquidity ratios. They used assets, liability, tax, banks size, inflation, region, globalization, GDP, policies and laws to find their relationship with profitability.

3.2 Research Articles Harson (SudinHaron 2004) studied Islamic banks’ profit using panel data and dummy variables. He also used statistics and found the following results: a positive relationship between 1st interest rate and total income, 2nd consumer price index and profitability, total expense 3rd interest rate, inflation and size with profit for Islamic and conventional banks. Harson found a negative relationship between Islamic governments and Islamic banks developing due to protection policies. Harson also found Islamic and conventional banks’ profitability ratios were too close therefore conventional banks can use Islamic banks products. Other study (Al Haris,AbuGhazalah, El-Galgy 2013) used Basel 3 to compare Islamic banks’ profitability with conventional in GCC during 2003-2011 and found Islamic banks’ efficiency needed improvement to match conventional banks, but profitability and liquidity were opposite. GCC banks suffered a modest crisis in 2008. Many researchers studied it. One of the most important researches (Muni Sekhar Amba1 &FayzaAlmukharreq, 2013) used the bank scope database for 92 banks in GCC. 27 out of 92 banks were Islamic. They found that even the profitability of the Islamic banks was reduced but it was still better than BUiD-F&B- 2013109084

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conventional banks during the crisis. It was better than conventional banks because they have better ROA, ROE and NIM. The following table summarizes how GCC banks were affected by the global 2008 crisis. The following table summarizes their results no 1 2 3 4 5 6

Profitability element Equity ratio Tangible equity Equity ratio Loan ratio Assets ratio Liability

7 8 9

Deposit ratio Capital structure Liquidity

Crises effect on GCC banks Depreciate in all banks Islamic banks less than Conventional Islamic banks less than Conventional Positive effect with the crisis for all Negative effect with the crisis for all Increased in both with the crisis but Islamic banks had better deposit/expense ratio Greater in Islamic banks than Conventional banks Conventional better than Islamic banks Same effect on Islamic banks and Conventional

Other study analyzed the relationship between capital with profitability and the risk in 24 Asian countries from 2004 to 2008 using Moments technique method for dynamic panels (Chien-Chiang Lee a,*, Meng-Fen Hsieh b 2013). This study found a low positive relation between Investment banks and profitability, a highly negative relation between commercial banks and profitability, and it also found the country income increasing, reduces capital effect on profitability, and found that profitability is sensitive by capital in the Middle East more than anywhere. (Ghzouri, Mihiri 2013) studied profitability and macroeconomic factors for 10 commercial Tunisian banks from 1988 to 2011 using GMM model to find a positive relation between profitability and 1st capital, 2nd efficiency and 3rd foreign shareholders. A negative relation between profitability and bank size, a negative relation between GDP and net interest margin and dependent factors did not have an effect on ROA. Tunisia didn’t have a crisis in 2008 (HoussemRachdi 2013) because their banks hadn’t a strong relation with USA banks due to the strong control of the Central Bank. Rachdi compared Tunisia’s banks within two periods; 1st period before the crisis 2000-2006, 2nd period during and after crisis (2007-2010). He considered that the crisis started in 2007. In the 1st period he found a positive relationship between performance and 1st capital, 2nd bank size and GDP. And negative relationship between 1st cost of income rate, 2nd grow of deposit rate, 3rd inflation. But in the 2nd period he found a positive relationship with 1st inflation, 2nd GDP, and a negative relationship between printability and operational efficiency. Rachdi’s study gives a good comparison between the two periods BUiD-F&B- 2013109084

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but this study compares between 4 periods and interprets banks’ profitability depending on more criteria’s. CSP, GMM Macroeconomic technique used to study the profitability in Greek banks from 1985-2001(Panayiotis P. Athanasoglou 2008) and found a positive relation

between profitability and 1st labor productivity, 2nd business cycle and 3rd inflation because Greek banks reduced deposit interest rates and increased loan interest rates. But a high negative relation between profitability and operation expense as a result of high managerial decision cost. They showed in more than one place in their research that the high cost of managers’ designs reduces the profitability. Finally there is no evidence for a relation between banks size and profitability. They found that small banks make good profit and have good growth.

3.3 Summary, Comments, and Criticisms Researchers used different techniques to study banks’ profitability round the world. They summarized helpful similar and varies results to improve banks efficiency. Harson (2004) used panel data and studied Islamic banks profitability, and compare them with conventional banks. Alharis (2013) used basel3 technique to study GCC banks. Ambal M (2013) used bankscope to study GCC banks and compared Islamic banks with conventional banks. Chiien Lee (2013) used moment technique for dynamic data panel to study Asian banks. Ameur (2013) used GMM to study 10 Tunisian commercial banks. Rachdi (2013) analyzed many researches about Tunisian commercial banks with is 2 periods before and after 2008 crisis. This study use bank scope and Excel spreadsheet to analyze banks profitability in United Arab Emirates. They analyzed the flowing profitability elements and factors; 1st interest rate 2nd total income, 2nd consumer price index, 3rd expense, 4th inflation 5th size, 6th ROA, 7th ROE, 8th NIM, 9th Equity ratio, 10th Tangible equity, 11th Equity ratio, 12th Loan ratio, 13th Assets ratio, 14th Liability, 15th Deposit ratio, 16th Capital structure, 17th Liquidity, 18th efficiency , 19th foreign shareholders, 20th GDP, 21 cost of income rate, 22 grow of deposit rate, 23 inflation, 24 relation with foreign banks, 25 bank type (Investment, commercial, and Islamic), 26 labor productivity, 26 business cycle, 27 operation expense. Although many researchers studied banks’ profitability using macroeconomics and microeconomics factors highlighting the factor making loss and gain around the world,

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and fewer in UAE, but still need more comprehensive researches to compile and interpret results and support decision makers to increase the profitability.

4

Methodology

4.1 Sample Data and Period This study focuses on four banks in UAE (Dubai Islamic Bank PJSC, Abu Dhabi Islamic Bank - Public Joint Stock Co, Union National Bank, Mashreqbank PSC) during a 4 year period from 2008 – 2012. Data that was obtained from Bankscope DB on 23/10/2013 was converted to excel sheets. The data updated on 22/10/2013, update no 1606@BvD . Bankscope Database contains most world banks data. This study filtered them as United Arab Emirates country, and Assess size. It then selected the related fields and entered the important Data into Excel sheets which allowed it to analyze the data. Tables and graphs attached to the appendix.

4.2 Analytical Approach This study uses the quantitative methods techniques, spreadsheets, spss, and bankscope database to find out profitability factors by compiling the relations between; 1st amount of change on assets and on equity. 2nd Assets with inflation, 3rd Growth of Gross Loans relation with GDP, 4th population with Customer Deposits/ Total Funding excl Derivatives, and ROAA, ROEA also. Calculations and relations implemented by charts, to give non-doubtable results, and help bank design makers to increase their banks profitability. Government has shares in all selected banks, so the relation with government weren’t studied in this research.

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5

Analysis

5.1 Amount of Assets Change, Equity Change Table 6, and charts 1,2,8 shows that there is no significant relation between inflation and change on assets or change on equity. Chart 3 shows all selected banks gain assets every year except Mashriq Bank , in 2009 its assets was 25,765 billion and in 2012 it was 20,799 billion, that means it lost (25,76520,799=4,966 billion), about 5 billion in 3 years. Chart 4 show all selected banks gain equity, therefore, this study shows that there isn’t any problem with equity.

5.2 Return on assets Average (ROAA) & Return on equity Table 7 & chart 5 shows the 2 Islamic banks ROAA’s dropped sharply until 2009 & 2010 and corrected after 1 year but their ROAA is still less than the other 2 banks. Table 8 & chart 6 shows the 2 Islamic banks ROEA’s dropped sharply until 2009 & 2010 and corrected after 1 year also, but Mashreq banks dropped slowly and correct slowly, and Union banks dropped in 2009 and then become stable. By 2012 all of this category ROEA was close.

5.3 Profit Before Tax Table 9 & 10 , Charts 7,9 shows the 2 Islamic banks profit dropped sharply until 2009 & 2010. They then corrected themselves after 1 year as there ROA (graph 6). Chart 8 shows GDP is similar in shape to Abu Dhabi Islamic banks only in graph 7. ADIS also gains less profit than other banks from 2008 to 2010, but from 2010 to 2012 it enhanced its profitability and gained on the others. Union banks profit was lower than DIB and Mashreq in 2008. In 2012 it showed the most profitability. This profitability progress from 2009 – 2012 is clear and can be seen in the graphs named above. Spss tables (10.2.17) shows there is a no significant relation between independent factors (GDP, Inflation) and ROA , ROE, also profit before tax.

5.4 Operational profit The operational profit/average Equity in chart 10 behaves like profit before tax in chart 7 for all banks except Union Bank. Even if it gains more equity, one bank (chart2),but its ROEA is the highest, that means its operational profit is greater than others, except Abu Dhabi Islamic bank .

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5.5 Interest income 5.5.1

Interest Income & Interest Expense

Chart 12 show the negative relation between interest income, average earning assets, when Interest Income/average earning Assets ratio appreciate that mean either interest income increased or earning assets decreased. Chart 3 show assets ranks, gain, and loss. So comparing chart12 with chart2 shows the following: 1st Abu Islamic Bank Interest Income increased over all trends because it gains assets and its interest income/average assets is steady. Dubai Islamic bank its Interest income increased in 2011, Mashriq bank interest income decreased as its assets , that’s interpret his ROA (chart5), and profit before tax(chart7) depreciating Comparing interest income and net interest income in Chart 12, and chart 13 show Mashreq bank lose income more than others. Both Islamic banks gain more interest income than others in 2010. And chart 15 show Islamic banks have less interest expense/ average bearing liability than others. 5.5.2 Interest income on loans/Average Gross Loans All banks Interest income on loans/Average Gross Loans ratios (chart11) depreciated, but Abu Dhabi Islamic Bank better ratio was better than others , Mashriq bank’s ratio depreciated more than the other banks involved in this study. 5.5.3 Interest Income/Average Earning Assets Abu Dhabi Islamic Bank interest income was the highest, because its Interest Income/Average Earning Assets was steady (chart 12) even if it is gaining assets more than any one (chart1), Mashriq bank had the lowest interest income because its assets were depreciating in chart 1, and Interest Income/Average Earning assets depreciated also until it become the lowest. 5.5.4 Net Interest Income/Average Earning Assets Islamic banks had the highest and Mashriq banks were the lowest (chart 13), Abu Dhabi Islamic banks ratio greater than others more than 1%.

5.6 Interest Expense 5.6.1 Interest Expense on Customer Deposits/Average Customer Deposit A weak negative relation, between Interest, Expense on Customer Deposits/Average Customer Deposit and population (chart 14, chat 18). It is clear for Mashreq and Union, but Islamic banks decreased less.

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5.6.2 Interest Expense/Average Interest – Bearing Liabilities Ratio Islamic banks show lower ratios and are more linear (chart 15), Mashreq and Union had near ratios by the end of 2012. 5.6.3 Net Int. Less Loan Impairment charges/ Average Earning Assets. Chart 16 show all banks ratios affected in 2009, but after that Abu Dhabi Islamic Bank was the highest and Mashriq was the lowest.

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Summary of Findings, and Suggestions, and Recommendations

Islamic banks (AIB& DIB) ratios (ROAA, ROEA, profit before tax, interest income, net interest income) dropped in 2009 and 2010 but fixed after one year. It became more than the others especially AIB although they had less Interest expense/bearing liability. Mashriq bank faced many problems; its problems first appeared in 2010 and continued until 2012. This is clear in losing its assets and in all its profitability related ratios. Union banks operational profit was more than the others except AIB, and his ROE was the highest. Inflation, population and GDP do not affect profitability clearly for all banks. There isn’t any significant relation in spss, regression or shown in the charts. Abu Dhabi Islamic Bank, and Mashreq Bank need deeper study, not only profitability, but their efficiency also, because in 2010 their profitability progress had a big changes, one up and the other down. The deeper study indeed show focus on reasons.

7

Conclusion

The literature review covered various regions in the world. Each study summarized various results. This study finds some different results. Al Haris (Al Haris Abu Ghazalah, El-Galgy, 2013) studied 92 banks in GCC and summarized that Islamic Banks had better ROA and ROE, but this study summarized that the 2 Islamic banks had less ROA and ROE but more Interest and less expense. This study recommend other banks to reduce their expense because it worked for the Islamic banks, they fixed their problems in one year. The literature review studies show profitability relation with independent factors (inflation, GDP, population) positive in a country and negative in other. But this study didn’t find a clear significant relation. BUiD-F&B- 2013109084

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Bibliography

Al-Hares, O., AbuGhazaleh, N. & El-Galfy, A. (2013). Financial performance and compliance with Basil III capital standards: Conventional vs. Islamic banks. The journal of applied business research, vol. 29(4), pp. 1031-1048. Ambal, M. & Almukharreq(2013), F. Impact of the financial crisis on profitability of the Islamic banks vs. conventional banks: evidence from GCC. International journal of financial research, vol. 4(3), pp. 83-93. Ameur, I. & Mhiri, S. (2013). Explanatory factors of bank performance evidence from Tunisia. International journal of economics, finance and management, vol. 2(1), pp. 143-152. Athanasoglou, P., Brissimis, S., & Delis, M. (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of international markets intuitions and money, vol. 18(2), pp. 121-136. Haron, S. (2004). Determinants of Islamic bank profitability. Global journal of finance and economics, vol. 1(1), pp. 2-22. Lee, C. & Hsieh, M. (2013). The impact of bank capital on profitability and risk in Asian banking. Journal of international money and finance, vol. 32(1), pp. 251-281. Liu, J., Ohlson, J. & Zhang, W. (2013). A comparison of Chinese and US firms' profitability [online]. Accessed November 20th, 2013. Available at http://ssrn.com/abstract=2204872. Rachdi, H. (2013). What determines the profitability of banks during and before the international financial crisis? Evidence from Tunisia. International journal of economics, finance and management, vol. 2(5), pp. 370-377.

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9

Appendices

9.1 Tables

Table 1 Governments shareholders table

9.1.1

Bank Name

Shareholder - Name

Shareholder - Type

Shareholder Total %

1

Emirates NBD PJSC

GOVERNMENT OF DUBAI

Public authority, State, Government

55.64

2

National Bank of Abu Dhabi

GOVERNMENT OF ABU DHABI via its funds

Public authority, State, Government

69.88

3

Abu Dhabi Commercial Bank

GOVERNMENT OF ABU DHABI via its funds

Public authority, State, Government

58.13

3

Abu Dhabi Commercial Bank

GOVERNMENT OF NORWAY via its funds

Public authority, State, Government

0.1

4

First Gulf Bank

GOVERNMENT OF NORWAY via its funds

Public authority, State, Government

0.22

4

First Gulf Bank

GOVERNMENT OF ABU DHABI via its funds

Public authority, State, Government

0.16

5

Dubai Islamic Bank PJSC

GOVERNMENT OF DUBAI

Public authority, State, Government

n.a.

5

Dubai Islamic Bank PJSC

GOVERNMENT OF NORWAY via its funds

Public authority, State, Government

0.17

6

Union National Bank

GOVERNMENT OF DUBAI via its funds

Public authority, State, Government

10

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9.1.2

Table 2

Equity/Total Assests

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9.1.3

Table 3 Amount Of Change Rate for Total assets in bill USD

year

2008 2009 2010 2011 2012

9.1.4

year

2008 2009 2010 2011 2012

Dubai Islamic Bank PJSC

Union National Bank

Abu Dhabi Islamic Bank Public Joint Stock Co.

-0.005 0.066 0.008 0.053

0.161 0.080 0.008 0.057

0.251 0.174 -0.012 0.152

Mashreqbank PSC

0.015 -0.103 -0.066 -0.036

Table 4 Amount Of Change Rate for Equity in bill USD

Dubai Islamic Bank PJSC

Union National Bank

Abu Dhabi Islamic Bank Public Joint Stock Co.

0.026448 0.143967 -0.00965 0.037906

0.385973 0.118417 0.095106 0.080663

0.267101 0.135219 0.057065 0.476007

Mashreqbank PSC

0.108972 0.045257 0.033808 0.079461

9.1.5 Table 5 United Arab Emirates - inflation Percentage change in consumer price index in local currency (period average), over previous year. Bankscope obtained data from UAE National Statistics Bureau Year 2008 2009 2010 2011 2012 Inflation rate % 12.25% 1.56% 0.88% 0.87% 0.67%

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9.1.6

Table 6 – Regression Change on Assets with Inflation

Regression Statistics Multiple R 0.57183 R Square 0.32699 Adjusted R Square -0.00952 Standard Error 0.111463 Observati ons 4 ANOVA df Regression

1

Residual

2

Total

3

SS 0.0120 73 0.0248 48 0.0369 21

Coefficie nts

Standar d Error

t Stat

P-value

-0.02083

0.1738 3

0.1198 1

0.9155 81

16.31244

16.548 08

0.9857 61

0.4281 7

Intercept X Variable 1

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MS 0.0120 73 0.0124 24

F 0.9717 24

Significan ce F 0.42817

Lower 95%

Upper 95%

-0.76876

0.7271 01

-54.8882

87.513 07

Lower 95.0% 0.768 76 54.88 82

Upper 95.0% 0.7271 01 87.513 07

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9.1.7

Table 7

Return on Average Assets (ROAA) Return on Average Assets (ROAA)

Return on Average Assets (ROAA)

Return on Average Assets (ROAA)

Return on Average Assets (ROAA)

Return on Average Assets (ROAA)

%

%

%

%

%

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

1.84

1.43

0.64

1.17

1.28

Bank Name

Union National Bank

2.39

1.64

1.71

1.83

1.89

Abu Dhabi Islamic Bank - Public Joint Stock Co.

1.79

0.14

1.47

1.54

1.5

Mashreqbank PSC

1.92

1.13

0.93

1.05

1.76

9.1.8

Table 8

Return on Average Assets (ROAE) Return on Average Equity (ROAE)

Return on Average Equity (ROAE)

Return on Average Equity (ROAE)

Return on Average Equity (ROAE)

Return on Average Equity (ROAE)

%

%

%

%

%

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

16.01

13.68

5.81

10.33

11.5

Union National Bank

20.02

12.61

11.95

12

11.79

Abu Dhabi Islamic Bank - Public Joint Stock Co.

15.39

1.22

13.42

13.85

11.32

Mashreqbank PSC

16.37

9.45

6.91

6.84

10.3

Bank Name

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9.1.9

Table 9 Profit before Tax Profit before Tax

Profit before Tax

Profit before Tax

Profit before Tax

Profit before Tax

mil USD

mil USD

mil USD

mil USD

mil USD

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

423

332

153

290

328

Union National Bank

395

322

370

413

444

Abu Dhabi Islamic Bank - Public Joint Stock Co.

232

21

279

315

327

Mashreqbank PSC

476

293

233

240

382

Bank Name

9.1.10 Table 10 UAE Independent indicators: GDP – Inflation - population 2008 1 2 3 4 5

Population-mil GDP at constant $ rate (Jan 03) - bil GDP real growth rate % GDP per head at constant $ rate (Jan 03) Inflation rate %

6.8 315.5 3.19% 46723.2 12.25%

2009 6.5 254.8 -4.80% 39104.3 1.56%

2010 6.7 287.4 1.67% 42663.2 0.88%

2011 7.1 348.6 3.88% 49187.9 0.87%

9.1.11Interest Income on Loans/ Average Gross Loans Interest Income on Loans/ Average Gross Loans 2008

Interest Income on Loans/ Average Gross Loans 2009

Interest Income on Loans/ Average Gross Loans

Interest Income on Loans/ Average Gross Loans

Interest Income on Loans/ Average Gross Loans

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

6.11

6.32

5.97

5.95

5.7

Union National Bank

6.18

6.83

6.46

6.12

6.09

Abu Dhabi Islamic Bank - Public Joint Stock Co.

7.31

7.14

7.42

7.09

6.79

6.5

7.49

7.3

6.27

5.88

Bank Name

Mashreqbank PSC

BUiD-F&B- 2013109084

Page 20

2012 7.5 383.8 4.37% 51330.6 0.67%

9.1.12 Interest Expense on Customer Deposits/ Average Customer Deposits Interest Expense on Customer Deposits/ Average Customer Deposits

Interest Expense on Customer Deposits/ Average Customer Deposits

Interest Expense on Customer Deposits/ Average Customer Deposits

Interest Expense on Customer Deposits/ Average Customer Deposits

Interest Expense on Customer Deposits/ Average Customer Deposits

2008

2009

2010

2011

2012

2.63

2.52

2.25

2

1.96

Union National Bank

3.05

3.71

2.95

2.16

1.97

Abu Dhabi Islamic Bank - Public Joint Stock Co.

2.57

2.28

2.01

1.64

1.38

Mashreqbank PSC

3.17

4.06

3.68

1.62

1.2

Interest Income/ Average Earning Assets

Interest Income/ Average Earning Assets

Interest Income/ Average Earning Assets

Interest Income/ Average Earning Assets

Interest Income/ Average Earning Assets

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

5.49

5.54

5.07

5.41

5.25

Union National Bank

5.96

6.08

5.53

5.21

5.14

Abu Dhabi Islamic Bank - Public Joint Stock Co.

6.09

5.97

5.93

5.92

5.88

Mashreqbank PSC

6.12

6.46

6.04

5.02

5.19

Bank Name

Dubai Islamic Bank PJSC

9.1.13 Interest Income/ Average Earning Assets

Bank Name

BUiD-F&B- 2013109084

Page 21

9.1.14 Interest Expense/ Average Interest-bearing Liabilities Interest Expense/ Average Interest-bearing Liabilities

Interest Expense/ Average Interest-bearing Liabilities

Interest Expense/ Average Interest-bearing Liabilities

Interest Expense/ Average Interest-bearing Liabilities

Interest Expense/ Average Interest-bearing Liabilities

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

2.44

2.34

1.99

1.7

1.66

Union National Bank

3.15

3.53

2.9

2.18

2.12

Abu Dhabi Islamic Bank Public Joint Stock Co.

2.12

2.01

1.77

1.4

1.2

Mashreqbank PSC

3.61

3.88

2.87

2.25

2.02

9.1.15 Net Interest Income/ Average Earning Assets Net Interest Income/ Average Earning Assets

Net Interest Income/ Average Earning Assets

Net Interest Income/ Average Earning Assets

Net Interest Income/ Average Earning Assets

Net Interest Income/ Average Earning Assets

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

3.15

3.2

3.08

3.58

3.52

Union National Bank

2.84

2.65

2.85

3.23

3.28

Abu Dhabi Islamic Bank - Public Joint Stock Co.

4.12

4.08

4.25

4.53

4.63

Mashreqbank PSC

2.66

2.65

3.21

2.91

3.3

BUiD-F&B- 2013109084

Page 22

9.1.16 Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

2.85

2.22

2.16

2.26

2.23

Union National Bank

2.57

2.2

2.17

2.42

2.41

Abu Dhabi Islamic Bank - Public Joint Stock Co.

3.04

1.29

3.04

3.38

3.7

2.2

0.07

0.76

1.17

2.08

Mashreqbank PSC

9.1.17 Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

2008

2009

2010

2011

2012

Dubai Islamic Bank PJSC

3.15

3.2

3.08

3.58

3.52

Union National Bank

2.84

2.65

2.68

3.07

3.13

Abu Dhabi Islamic Bank - Public Joint Stock Co.

4.12

4.08

4.25

4.53

4.63

Mashreqbank PSC

2.66

2.65

3.21

2.91

3.3

Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

BUiD-F&B- 2013109084

Page 23

9.1.18 ROAA relation with inflation and GDP rate Abu Dhabi Dubai Islamic Union Islamic Bank National year Bank PJSC Public Joint Bank ROAA ROAA Stock Co. rate% rate% ROAA rate% 1.84% 2.39% 1.79% 2008 2009 2010 2011 2012

Mashreqbank PSC ROAA rate%

inflation Rate%

GDP Rate%

1.92%

12.25%

3.19%

1.43%

1.64%

0.14%

1.13%

1.56%

-4.80%

0.64%

1.71%

1.47%

0.93%

0.88%

1.67%

1.17%

1.83%

1.54%

1.05%

0.87%

3.88%

1.28%

1.89%

1.50%

1.76%

0.67%

4.37%

9.1.19 SPSS SPSS- Correlations Return on Assets Average Relation with Inflation

DIB_ROA

Pearson Correlation

DIB_ROA

UNB_ROA

AIB_ROA

Masriq

Inflation

Relation

1

.709

-.031

.752

.748

positive

.180

.961

.142

.146

Sig. (2-tailed)

UNB_ROA

AIB_ROA

Masriq

Inflation

N

5

5

5

5

5

Pearson Correlation

.709

1

.635

.817

.922*

Positive strong

Sig. (2-tailed)

.180

.250

.091

.026

Weak positive

N

5

5

5

5

5

Pearson Correlation

-.031

.635

1

.403

.370

Sig. (2-tailed)

.961

.250

.501

.540

N

5

5

5

5

5

Pearson Correlation

.752

.817

.403

1

.679

Sig. (2-tailed)

.142

.091

.501

N

5

5

.208

5

5

5

*

1

Pearson Correlation

.748

.922

.370

.679

Sig. (2-tailed)

.146

.026

.540

.208

N

5

5

5

5

5

*. Correlation is significant at the 0.05 level (2-tailed).

BUiD-F&B- 2013109084

Page 24

SPSS -

GDP & Return on Assets Average - Correlations DIB_ROA

DIB_ROA

Pearson Correlation

UNB_ROA

1

-.056

.180

.961

.142

.929

5

5

5

5

5

Pearson Correlation

.709

1

.635

.817

.507

Sig. (2-tailed)

.180

.250

.091

.384 5

5

5

5

5

-.031

.635

1

.403

.961

.250

5

5

Pearson Correlation

.752

Sig. (2-tailed)

Pearson Correlation

Sig. (2-tailed) N

N GDP

Relation

.752

N

Masriq

GDP

-.031

N

AIB_ROA

Masriq

.709

Sig. (2-tailed)

UNB_ROA

AIB_ROA

Pearson Correlation Sig. (2-tailed) N

*

.949

.501

.014

5

5

5

.817

.403

1

.405

.142

.091

.501

5

5

5

5

5

-.056

.507

*

.405

1

.929

.384

.014

.498

5

5

5

5

.949

Negative weak

Positive strong

.498

5

*. Correlation is significant at the 0.05 level (2-tailed).

year

2008 2009 2010 2011 2012

Dubai Islamic Bank PJSC ROEA rate% 16%

Union National Bank ROEA rate%

Abu Dhabi Islamic Bank - Public Joint Stock Co. ROEA rate%

Mashreqbank PSC ROEA rate%

inflation Rate%

GDP Rate%

20%

15%

0.1637

12.25%

3.19%

14%

13%

1%

0.0945

1.56%

-4.80%

6%

12%

13%

0.0691

0.88%

1.67%

10%

12%

14%

0.0684

0.87%

3.88%

12%

12%

11%

0.103

0.67%

4.37%

BUiD-F&B- 2013109084

Page 25

SPSS – GDP relation with Return on Equity - Correlations DIB_ROE DIB_ROE

Pearson Correlation

UNB_ROE

1

Sig. (2-tailed)

UNB_ROE

Pearson Correlation

.697

Sig. (2-tailed)

.191

.818

-.171

.191

.730

.091

.784

5

5

5

5

1

.355

*

.922

.145

.558

.026

.816

5

5

5

Pearson Correlation

-.214

.355

1

.192

.905

Sig. (2-tailed)

.730

.558

.757

.035

5

5

5

5

5

1

.121

.818

.922

.192

Sig. (2-tailed)

.091

.026

.757

5

5

5

Weak negative

Strong positive

.846 5

5

*

1

Pearson Correlation

-.171

.145

.905

.121

Sig. (2-tailed)

.784

.816

.035

.846

5

5

5

5

N

Relation

*

*

Pearson Correlation

N RDP_Rate

-.214

5

N Masriq_ROE

GDP Rate

5

N AIB_ROE

Masriq_ROE

.697

5

N

AIB_ROE

5

*. Correlation is significant at the 0.05 level (2-tailed).

SPSS – Return on Equity - Correlations DIB_ROE DIB_ROE

Pearson Correlation

UNB_ROE

1

Sig. (2-tailed) N UNB_ROE

.697

Sig. (2-tailed)

.191

-.214

.818

.687

.191

.730

.091

.200

5

5

5

5

.355

*

**

1

.922

1.000

.558

.026

.000

5

5

5

5

-.214

.355

1

.192

.373

.730

.558

.757

.537

5

5

5

5

5

Pearson Correlation

.818

*

.192

1

.922*

Sig. (2-tailed)

.091

.026

.757

5

5

5

5

5

Pearson Correlation

.687

**

.373

*

1

Sig. (2-tailed)

.200

.000

.537

.026

5

5

5

5

Pearson Correlation

N

N Inflation

Inflation

5

Sig. (2-tailed)

Masriq_ROE

Masriq_ROE

.697

5

Pearson Correlation

N AIB_ROE

AIB_ROE

N

.922

1.000

weak

strong

.026

.922

5

*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).

BUiD-F&B- 2013109084

Page 26

SPSS- GDP constant $ bill - relation with profit before Tax - Correlations DIB_profit_bef

UNB_profit_befor

AIB_profit_before_

Masriq_profit_b

GDP_Co

ore_Tax_bil

e_Tax_bil

Tax_bil

efore_Tax_bil

nstant_

Relation

bil DIB_profit_before_Tax_bi

Pearson Correlation

l

Sig. (2-tailed) N

1

Pearson Correlation

.149

bil

Sig. (2-tailed)

.811

AIB_profit_before_Tax_bi

Pearson Correlation

l

Sig. (2-tailed) N

-.242

.826

.187

.811

.694

.085

.763

5

5

5

5

1

*

.309

**

.044

.613

.002 5

5

UNB_profit_before_Tax_

N

.149

.888

.984

5

5

5

-.242

*

1

.015

.819 strong

.981

.090

.888

.694

.044

5

5

5

5

5

1

.269

Pearson Correlation

.826

.309

.015

x_bil

Sig. (2-tailed)

.085

.613

.981

5

5

5

5

5

Pearson Correlation

.187

**

.819

.269

1

Sig. (2-tailed)

.763

.002

.090

.662

5

5

5

5

GDP_Constant_bil

N

strong

5

Masriq_profit_before_Ta

N

weak

.984

.662

5

*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).

BUiD-F&B- 2013109084

Page 27

9.1.20 Bankscope Definitions Bankscope \ EIU Countery profile - United arab Emirates

Population - source

UAE Central Bank, Annual Report 1996 (figures derived from the federal Ministry of Planning)

GDP at constant $ rate (Jan 03) definition

Nominal GDP in $, calculated on the basis of the GDP in local currency at current market prices, converted at constant $ rate (Jan 1, 2003)

BUiD-F&B- 2013109084

GDP real growth rate (%) definition

Percentage change in real GDP, over previous year.

GDP real growth rate (%) source

Derived from National Bureau of Statistics

GDP real growth rate (%) note

GDP per head at constant $ rate (Jan 03) definition

Inflation rate definition

Inflation rate source

Prior to 2000 data are estimated using growth rates for GDP at 1995 constant prices.

Nominal GDP per head in $, calculated on the basis of the GDP in local currency at current market prices converted at constant $ rate (Jan 1, 2003), divided by population

Percentage change in consumer price index in local currency (period average), over previous year.

UAE National Statistics Bureau

Page 28

9.1.21 Assets Rank for United Arab Emirates banks

Bank Name

Country Rank by Assets

World Rank by Assets

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

2008

2009

2010

2011

2012

1

Emirates NBD PJSC

1

259

77

77

78

77

84

2

National Bank of Abu Dhabi

2

266

45

54

58

70

82

3

Central Bank of the United Arab Emirates

53

56

62

64

71

4

Emirates Bank International PJSC

51

n.a.

n.a.

n.a.

n.a.

5

Abu Dhabi Commercial Bank

3

429

40

44

49

50

49

6

First Gulf Bank

4

445

29

34

38

43

48

7

National Bank of Dubai Public Joint Stock Company

28

n.a.

n.a.

n.a.

n.a.

8

Dubai Islamic Bank PJSC

5

677

23

23

24

25

26

9

Union National Bank

6

731

18

21

22

22

24

10

Abu Dhabi Islamic Bank - Public Joint Stock Co.

7

737

14

17

20

20

23

11

Mashreqbank PSC

8

799

25

26

23

22

21

12

Commercial Bank of Dubai P.S.C.

9

1253

10

10

10

10

11

13

Emirates Islamic Bank PJSC

10

1292

7

7

9

6

10

14

Al Hilal Bank PJSC

11

1412

2

5

7

8

9

15

National Bank of Ras Al-Khaimah (P.S.C.) (The)-RAKBANK

12

1568

n.a.

n.a.

n.a.

n.a.

7

16

Bank of Sharjah

13

1727

4

5

6

6

6

17

Sharjah Islamic Bank

14

1948

4

4

5

5

5

18

Noor Islamic Bank

15

1968

6

5

5

5

5

19

National Bank of Fujairah

16

1992

3

3

4

4

5

BUiD-F&B- 2013109084

Category

Ranking Year 2012

1

2

3

4

5

Page 29

Bank Name

20

Dubai Bank

21

United Arab Bank PJSC

22

Amlak Finance PJSC

23

Commercial Bank International P.S.C. Arab Bank for Investment & Foreign Trade-Al Masraf National Bank of Umm Al-Qaiwain

Country Rank by Assets

17

World Rank by Assets

2145

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

Total Assets bil USD

2008

2009

2010

2011

2012

5

5

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

3

4

4

4

4

n.a.

n.a.

18

2317

3

3

3

3

3

19

2332

4

3

4

3

3

20

2365

4

4

4

3

3

Invest Bank P.S.C.

21

2465

n.a.

n.a.

3

3

3

27

Tamweel PJSC

22

2539

3

3

3

3

3

28

Abu Dhabi Investment Company

23

3347

2

2

3

2

2

29

Ajman Bank

24

3636

0

1

1

1

1

30

Bank Melli Iran

n.a.

n.a.

n.a.

n.a.

n.a.

31

Waha Capital P.J.S.C.

1

1

1

1

1

32

Finance House PJSC

1

1

1

1

1

1

1

1

n.a.

n.a.

0

0

0

0

0

0

0

n.a.

n.a.

n.a.

0

n.a.

n.a.

n.a.

n.a.

1

1

1

0

0

0

0

0

0

0

0

0

0

0

0

n.a.

n.a.

n.a.

n.a.

n.a.

24 25 26

33 34 35

Emirates Industrial Bank Emirates Investment Bank PJSC Abu Dhabi Investment House

36

Al khaliji France SA

37

SHUAA Capital psc

38

Dunia Finance LLC

39 40

Credit Europe Bank (Dubai) Ltd Wall Street Exchange Centre (Dubai)

BUiD-F&B- 2013109084

25

26

27

28

4444

6332

7242

11958

Category

Ranking Year 2012

6

Page 30

9.2 Graphs 9.2.1

Chart 1 Change on assetss

Assets in bil USD 30

Dubai Islamic Bank PJSC

25

Union National Bank

20 15

Abu Dhabi Islamic Bank - Public Joint Stock Co.

10 5

Mashreqbank PSC

0 2008

9.2.2

2009

2010

2011

2012

Chart 2 Change on Equity

Equity in bil USD 4.5

Dubai Islamic Bank PJSC

4 3.5

Union National Bank

3 2.5 2 1

Abu Dhabi Islamic Bank - Public Joint Stock Co.

0.5

Mashreqbank PSC

1.5

0 2008

2009

BUiD-F&B- 2013109084

2010

2011

2012

Page 31

9.2.3

Chart 3 Total Assetss in USD bill

Chart 3 Total Assetss in USD bill 30 25

20

2008

15

2009

10

2010

5

2011

0 Dubai Islamic Union Abu Dhabi Mashreqbank Bank PJSC National Bank Islamic Bank PSC Public Joint Stock Co.

9.2.4

2012

Chart 4 Equity in USD bill

Chart 4 Equity in USD bill 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

2008 2009 2010 2011 Dubai Islamic Bank PJSC

Union National Bank

BUiD-F&B- 2013109084

Abu Dhabi Islamic Bank Public Joint Stock Co.

Mashreqbank PSC

2012

Page 32

9.2.5

Chart 5 Return on assets Average (ROAA) from 2008 to 2012

Chart 5 Return on assets Average (ROAA) from 2008 to 2012

3

Dubai Islamic Bank PJSC

2.5 2

Union National Bank

1.5 1

Abu Dhabi Islamic Bank - Public Joint Stock Co.

0.5

Mashreqbank PSC

0 2008

9.2.6

2009

2010

2011

2012

Chart 6 Return on Equity Average (ROEA) from 2008 to 2012

Chart 6 - Tabe 8

Return on Average Assets (ROAE)

25

Dubai Islamic Bank PJSC

20

rate %

Union National Bank 15 10

Abu Dhabi Islamic Bank - Public Joint Stock Co.

5

Mashreqbank PSC 0 2008

2009

BUiD-F&B- 2013109084

2010

2011

2012

Page 33

9.2.7

Chart 7

profit before Tax

USD mil

Chart 7 500 450 400 350 300 250 200 150 100 50 0

Dubai Islamic Bank PJSC Union National Bank

Abu Dhabi Islamic Bank - Public Joint Stock Co. Mashreqbank PSC

2008

9.2.8

profit before Tax

2009

2010

2011

2012

Chart 8 GDP - Inflation

Chart 8 .1

GDP + Inflation

14.00% 12.00% 10.00% Axis Title

8.00% GDP real growth rate %

6.00% 4.00%

Inflation rate %

2.00% 0.00% -2.00%

2008

2009

2010

2011

2012

-4.00% -6.00%

BUiD-F&B- 2013109084

Page 34

chart 8.2 Population-mil 7.6 7.4 7.2 7 6.8

Population-mil

6.6 6.4 6.2 6 2008

2009

2010

2011

2012

Chart 9 Profit before Tax mil USD

Chart 9 Profit before Tax mil USD 500 450 400 350 300 250 200 150 100 50 0

Dubai Islamic Bank PJSC Union National Bank Abu Dhabi Islamic Bank Public Joint Stock Co. Mashreqbank PSC

2008

2009

BUiD-F&B- 2013109084

2010

2011

2012

Page 35

Chart 10: Operating profit/ average Assets & Operating profit/ average Equity

Chart 10 Oprating profit/ average Assests and Equity 25

Operating Profit/ Average Equity == Dubai Islamic Bank PJSC 20

Operating Profit/ Average Equity == Union National Bank Operating Profit/ Average Equity == Abu Dhabi Islamic Bank - Public Joint Stock Co.

Profite Rate %

15

Operating Profit/ Average Equity == Mashreqbank PSC 10

Operating Profit/ Average Total Assets == Dubai Islamic Bank PJSC Operating Profit/ Average Total Assets == Union National Bank

5

Operating Profit/ Average Total Assets == Abu Dhabi Islamic Bank - Public Joint Stock Co.

0 2008

2009

2010

2011

2012

Operating Profit/ Average Total Assets == Mashreqbank PSC

-5

BUiD-F&B- 2013109084

Page 36

9.2.9

Chart 11- Interest Income on Loans/ Average Gross Loans

Chart 11- Interest Income on Loans/ Average Gross Loans 8

Dubai Islamic Bank PJSC

7

6 %

5

Union National Bank

4 3 Abu Dhabi Islamic Bank - Public Joint Stock Co.

2 1 0 2008

2009

2010

2011

Mashreqbank PSC

2012

9.2.10 chart12 - Interest Income/ Average Earning Assets

chart12 - Interest Income/ Average Earning Assets 7

Dubai Islamic Bank PJSC

6

%

5 Union National Bank

4 3 2

Abu Dhabi Islamic Bank - Public Joint Stock Co.

1

Mashreqbank PSC

0 2008

2009

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9.2.11 Chart 13- Net Interest Income/ Average Earning Assets

Chart 13- Net Interest Income/ Average Earning Assets 5 4.5

Dubai Islamic Bank PJSC

4 3.5

Union National Bank

%

3 2.5

Abu Dhabi Islamic Bank - Public Joint Stock Co.

2 1.5 1

Mashreqbank PSC

0.5 0 2008

2009

2010

2011

2012

9.2.12 Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits

Chart14- Interest Expense on Customer Deposits/ Average Customer Deposits 5

Dubai Islamic Bank PJSC

4 3 %

Union National Bank

2 1 0 2008

2009

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9.2.13 Chart15- Interest Expense/ Average Interest-bearing Liabilities 4.5 4

Chart15- Interest Expense/ Average Interest-bearing Liabilities

3.5

Dubai Islamic Bank PJSC

3

Union National Bank

%

2.5 2

Abu Dhabi Islamic Bank - Public Joint Stock Co.

1.5

Mashreqbank PSC

1 0.5 0 2008

2009

2010

2011

2012

9.2.14 Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets

Chart16- Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets 4

3.5

Dubai Islamic Bank PJSC

3

%

2.5

Union National Bank

2 Abu Dhabi Islamic Bank - Public Joint Stock Co.

1.5 1

Mashreqbank PSC

0.5 0 2008

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9.2.15 Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets

Chart17- Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets 5

Dubai Islamic Bank PJSC

4 3 %

Union National Bank

2 1 0 2008

9.2.16 Cart 18

2009

2010

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2012

Abu Dhabi Islamic Bank - Public Joint Stock Co.

Population-mil

Population-mil 7.6

7.4 7.2 7 6.8

Population-mil

6.6

6.4 6.2 6 2008

2009

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